Bloomberg LLP is liquidating its wealth management business, BloombergBlack affecting 30-40 employees that could return to the company or be laid off permanently, according to sources close the situation.
It was a venture that had yet to leave its trial phase.
Around April, the financial blogosphere got wind of the product and — with a monthly price of $100, the power of Bloomberg's real-time information, and the promise of smart wealth advisors and strategists — it was expected to be disruptive.
Bloomberg co-founder Tom Secunda addressed the unit the morning and employees were asked to leave headquarters by noon. Their terminal access was immediately revoked, said the source.
Bloomberg denies that employees were asked to leave the premises.
“We weighed the future prospects of the business against the ongoing resource investment and concluded that it wasn’t in our best interest to continue moving forward," said Bloomberg spokesman Ty Trippet. "We remain optimistic about the idea and open to the possibility of pursuing a similar business in the future.”
Employees that have been let go will have an opportunity to interview within the company or stay on to help with the closing of the business.
"All affected employees are being offered the opportunity to find other positions within the company and some placements have already been made. Several are also staying on to help with the transition. We expect many affected employees will continue on to other jobs at the company," said Trippet.
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